Africa's Tech Enablers: How to Build Resilient Digital Infrastructure

Tech has often been heralded as Africa’s great accelerator. The tool that will allow the Continent to leapfrog middle income regions, solve complex social challenges and establish itself as the emerging market for the fourth industrial revolution. All eyes are on Africa’s tech industry to provide future opportunities for growth through the Covid-19 crisis.

However, these promises cannot be realised without investment into robust digital infrastructure and stronger tech ecosystems. Amrote Abdella, Regional Director at Microsoft4Afrika, has highlighted that, though Covid-19 has “pushed digital adoption forward in vast leaps”, it has also revealed “disparities of infrastructure across Africa, as well as gaps in adoption and policy.”

These shortfalls may go someway to explaining the slow adoption of online retail across the Continent, even as restrictions have pushed changes in consumer behaviour. In Q2 2020 Jumia’s revenue was 10% down on last year compared to Walmart’s e-commerce boost of 97%. In an interview with TechCabal, the company’s Chairwoman, Juliet Ammanah, explained that where the US government has shored up consumer purchasing power similar initiatives have not been possible in Africa.

Africa’s fintech companies, such as 4G Capital, have been looked to fill this gap. The company’s Founder, Wayne Hennessy-Barrett has called for investors to look beyond the pandemic and remember that “good businesses will continue to need funding”. He remains positive that growth in the fintech sector is accelerating and innovation will build new markets.

Despite the challenges, there continues to be capital available in the market. African VC is a young industry and funds raised since 2017 are still in operation. TLCom’s TIDE fund raised in February of this year totals US$ 71 million to invest in tech-driven companies across the continent. Though the impact of Covid-19 on the funding ecosystem remains uncertain, DFIs can lend some stability to a sector that had achieved record breaking funding rounds in 2019. Now is the time to invest in a more resilient tech ecosystem.